What is Qtum?
By default, various blockchains are mutually incompatible, but developers from Qtum team have managed to do the impossible by connecting the best properties of Bitcoin and Ethereum.
The primary goal of Qtum is to give companies convenient and easy instruments to build decentralized software applications. At the meantime, high security and safety of the network is ensured. The main directions of the project will be first of all applications for the area of finance and supply chains.
Let's take a detailed look at the innovativeness of this coin and how developers were able to integrate totally different blockchains with each another.
Qtum is a Chinese project that was launched in March 2017. Like most projects, the launch took place through an ICO. The token distribution procedure began on March 16. Investor interest turned out to be so high that more than 5,000 BTC were collected in the first 10 minutes. In total, 100 million QTUMs were generated, 51 million of which were sold to investors at the ICO. At the end of the sale, the project raised 11,156,766 BTC and 77081,031 ETH (at that time about $ 15.7 million).
Despite the fact that the initial deadlines were set at 30 days, all tokens were sold in the first 5 days. The distribution of coins took place in the following way:
- ICO participants - 51%.
- Developers, founders, investors - 20%.
- Qtum Foundation - 20%.
- Educational projects, research, market expansion - 9%.
One of the main advantages of Qtum is its very strong project team. The development team consists of specialists who have experience in large and well-known companies such as Alibaba, Nasdaq, Tencent and Baidu.
- Patrick Dai - Co-founder. Studied at Draper University and received his master's degree from the Chinese Academy of Sciences. Previously worked for Alibaba Corporation;
- Jordan Earls - Co-founder and Principal Developer. A well-known personality in the crypto community. Started programming at age 13;
- Neil Mahi - co-founder. Has 20 years of experience in programming and 4 years of experience in the blockchain industry.
Among the investors in Qtum, there are also famous personalities:
- Anthony Di Iorio - Founder of Ethereum and CEO of JaxxWallet;
- Chen Weixing - billionaire and founder of Kuaidi;
- Jeremy Gardner is the co-founder of Augur.
The Qtum cryptocurrency runs on a hybrid blockchain, which is built on separate elements of Bitcoin and Ethereum.
The method of confirming transactions UTXO (unspent outputs) was taken from bitcoin, this method is the most reliable of all currently existing.
Why did the developers choose the hard path rather than the simpler Ethereum transaction confirmation model, which uses account balance tracking (like regular banks)?
As the developers themselves answered, the UTXO model is not only safer, but also more scalable, because it allows you to simultaneously check several transactions, regardless of the sequence of entering the state of balances into the blockchain.
At the same time, the choice in favor of UTXO presented developers with a very difficult task - the need to integrate this model into the Ethereum virtual machine. In theory, this is impossible, but the team used a special technology called "Account Abstraction Layer", which allowed the UTXO of Bitcoin and the EVM of Ethereum to be connected.
The "Account Abstraction Layer" is a blockchain technology innovation created directly by Qtum. Smart contracts can be run on the Qtum cryptocurrency blockchain, but they provide broader opportunities than conventional Ethereum smart contracts. The developers themselves called them master contracts.
In general, Qtum is one of the most advanced and technologically interesting cryptocurrencies.
How to invest in Qtum in the UAE?
You can invest in cryptocurrency using the classical method by purchasing crypto coins on a crypto exchange. Opening a crypto wallet will take a few minutes, but this investment method is most often used by more experienced traders who understand the nature of the crypto world.
If you are new to the investment business, trading cryptocurrency through online trading platforms may well suit you. Online trading platforms allow you to trade CFDs.
A Contract for Difference (CFD) is a popular type of derivative that allows you to trade on margin, giving you more options in the financial markets.
CFD is a type of financial derivative where you do not buy the underlying.
Instead, you buy or sell conventional units of that financial instrument depending on whether you think the underlying price will rise or fall. A CFD is a contract between a trader and a broker who agrees to exchange the difference in the value of the underlying security for the period between the start and end of the contract.
The main advantage of CFDs is the ability to use leverage, with which you can increase your investment. Thus, even with a minimum investment amount, there is an opportunity to earn a good profit. It is worth remembering that, on the other hand, using leverage increases the risk of your surgery. Therefore, it is worthwhile to understand well how it works before using such a method.
By trading CFDs, you can make a profit even in a few minutes, but this method involves active participation in the market, constant monitoring and analysis. CFDs allow clients to trade freely without owning the underlying asset or acquiring rights or obligations over the underlying asset. A salient feature of CFDs is the flexibility to trade against price movements without actually buying or selling a physical instrument.
It is better to start trading cryptocurrency with a practice account. Some exchanges allow you to create an account with a virtual balance. This will allow you to get acquainted with the market and the structure of the trading platform, and practice. In addition, you should definitely turn to theory. For example, read scientific literature on trading, listen to lectures on this topic, take appropriate courses, get acquainted with technical and fundamental analysis. All this will help not only to see the ups and downs of asset prices on the charts, but also to try to predict them.
By studying the literature and the experience of other traders and investors you can also learn different trading strategies. One such strategy is averaging. It involves dividing your capital into several parts and investing small amounts in an asset. This method will help you find the best point to buy an asset.
What shouldn't you do when investing online?
Beginners make many mistakes and they usually cost money. In this regard, it is better to get acquainted with other people's experience beforehand in order to avoid unnecessary losses. To this end, we have prepared a few rules that every novice user should follow.Do not buy cryptocurrency on the news. As a rule, if user found out about some news, which should lead to rise in price of the coin, it probably already happened.
If bought - it is obligatory to use stop-loss orders. In this case, the exchange will automatically sell the asset at the specified price, and the trader will not lose anything. Be very careful, or do not trust the buy and sell signals of others. At the moment, there are many channels in Telegram and other social networks that publish forecasts for cryptocurrency. Their authors are not responsible for their subscribers' money.Do not give anyone, especially unfamiliar people, capital for trust management. Such practice has been popular in cryptomir for several years and often has a negative result for inexperienced traders.Don't give in to emotions. Most losing trades are made precisely because of loss of control.Record your trades. It will help to evaluate and correct the trading strategy as well as to detect mistakes.
Overall, cryptocurrency trading is a new and exciting business.
With a competent approach to using digital money, you can minimize risks and fully enjoy its benefits. Once you learn the cryptocurrency market and the tools you need to trade, you'll be able to profit from your trades and have extra income, spending very little of your time. And later on, when you get well acquainted with the cryptocurrency market, you can make it your main activity with excellent profit if you wish.
Get started and let success be your guide! Also, many people are starting to wonder if they should buy Qtum cryptocurrency in the future. If you study the chart of the rate quotation of the coin, you can understand that the day before the adjustment period of the current rate will end, which, in turn, indicates that a new growth phase is coming. That is, the coin can act as a good tool for investing money there and get a financial profit. Based on the forecast for the next year, we can conclude that the currency will be able to firmly entrench at the price threshold of thirty American dollars, which will attract the attention of a large number of users who are interested in making money on the cryptocurrency exchange.